BI Increases Global Economic Growth Projection 2024 To 3 Percent

BI Governor Perry Warjiyo (Photo: dock. Antara)

JAKARTA - Bank Indonesia (BI) estimates global economic growth in 2024 in the range of 3 percent. This projection is up from the previous circulation of 2.8 percent.

BI Governor Perry Warjiyo said that the improvement in economic growth was mainly supported by the strong economic performance of the United States (US) and India.

"In line with the growth in household consumption and high investment," Perry said at the RDG BI conference, Wednesday, February 21, 2024.

However, Perry sees that there are still some risks that overshadow among them China's weakening economic growth and contraction in the economic growth of Britain and Japan in two consecutive quarters.

According to Perry, another thing is the excalation of continued geopolitical tensions, thus disrupting the supply chain and increasing food and energy commodity prices, and hampering the rate of decline in global inflation.

The development resulted in uncertainty in the financial market being still high. And the US interest rate is believed to have only fallen in the second semester of 2024, in line with the still high US inflation.

"This development causes the strengthening of the US dollar globally and restrains the continued flow of foreign capital into developing countries because the return on US debt securities has increased again. This condition can reduce the prospects for future world economic growth," explained Perry.

Thus, Perry conveyed that this condition needed a response to mitigate the negative impact of the global slowdown by strengthening the policies of countries in the world, including Indonesia.